I see this as a need to get into more family homes. Nintendo has usually done well there, but I do not think, while the Switch is appealing to gamers and making us happy, that Switch is appealing to the family demographic. There are still going to be games for gamers like Smash Brothers, Pokemon, Metroid Prime 4, 3rd party titles. But just like Xbox and Playstation have shown, getting the "family" demographic can be hard if seen as just a hardcore gaming machine.
Also Nintendo would like to make gaming more of a part of people's lives, rather than just a niche thing that a portion of people play. I'm interested to see where they take it. LABO is a good start with ideas. Some traditional gaming experiences will be great for this strategy too if tweaked a little in user interface, such as Animal Crossing, Mario Party, or Pikmin.
I would love to see a series of high quality, well-developed casual games that have the same creativity as Splatoon and LABO. Maybe 5 games into the next year exploring different ways to play with Switch. Balanced with about 7 or so gamer-centered Nintendo offerings each year, 2 of which explore new Switch playstyles, 2 completely new IPs such as Splatoon and ARMS, and continued partnerships and encouragement of every 3rd party developer and indie studio they can find.
Switch still has the potential to surpass the Wii in sales, SNES in game quality, and PS2 as console king if everything hits well.
